SkyWater Technology

(Nasdaq: SKYT) A u g u s t 2 0 2 1

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This presentation and the accompanying oral presentation contain “forward-looking” statements that are based on the Company’s current expectations orforecasts of future events, rather than past, events and outcomes, and are not guarantees of future performance. Forward-looking statements include allstatements other than statements of historical fact contained in this presentation, including information or predictions concerning the Company’s futurebusiness, results of operations, financial performance, plans and objectives, competitive position, market trends, and potential growth and marketopportunities. In some cases, you can identify forward-looking statements by words such as “intends,” “estimates,” “predicts,” “potential,” “continues,”“anticipates,” “plans,” “expects,” “believes,” “should,” “could,” “may,” “will”, "targets", "projects", “seeks” or the negative of these terms or other comparableterminology.

Forward-looking statements involve risks and uncertainties, which may cause the Company’s actual results, performance or achievements to bematerially different from those expressed or implied by forward-looking statements. Key factors that could cause actual results to be different thanexpected or anticipated include, but are not limited to: our goals and strategies; our future business development, financial condition and results ofoperations; our customer relationships and our ability to retain and expand our customer relationships; our ability to accurately predict our future revenuesfor the purpose of appropriately budgeting and adjusting our expenses; our ability to diversify our customer base and develop relationships in newmarkets; the level of demand in our customers’ end markets; our ability to attract, train and retain key qualified personnel; changes in trade policies,including the imposition of tariffs; the impact of the COVID-19 pandemic on our business, results of operations and financial condition; the impact of theCOVID-19 pandemic on the global economy; our ability to maintain compliance with certain U.S. Government contracting requirements; regulatorydevelopments in the United States and foreign countries; our ability to protect our intellectual property rights; and other factors discussed in the “RiskFactors” section of the prospectus.

In light of these risks, uncertainties and assumptions, the forward-looking events and outcomes discussed in this presentation may not occur and ouractual results could differ materially and adversely from those expressed or implied in our forward-looking statements. You are cautioned not to placeundue reliance on forward-looking statements, which are inherently unreliable and speak only as of the date of this presentation. The Company cannotguarantee that the future results, performance, or events and circumstances described in the forward-looking statements will be achieved or occur. TheCompany undertakes no obligation, and the Company expressly disclaims any obligation, to update or alter any forward-looking statements for anyreason after the date of this presentation, whether as a result of new information, future events or otherwise, except as required by law.

In addition, statements that “we believe” and similar statements reflect the Company’s beliefs and opinions on the relevant subject. These statements arebased upon information available to the Company as of the date of this presentation, and while the Company believes such information forms areasonable basis for such statements, such information may be limited or incomplete, and such statements should not be read to indicate that theCompany has conducted an exhaustive inquiry into, or review of, all potentially available relevant information. These statements are inherently uncertain,and you are cautioned not to unduly rely upon these statements.

This presentation also contains estimates, projections and other statistical data made by independent parties and by the Company relating to market sizeand growth and other data about the Company’s industry and its business. These data involve a number of assumptions and limitations, and you arecautioned not to give undue weight to such data. The Company has not independently verified the accuracy and completeness of the informationobtained by third parties included in this presentation.

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Safe Harbor Disclosure

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Investment Highlights

High-Margin ATS Combined with Wafers Services Creates a Scalable Business Model

Uniquely Positioned to Serve Megatrends:

Artificial Intelligence, Electrification, Medical Implants, Rapid Disease Screening, 5G/6G

Communications, Commercialization of Space

Seasoned Management Team with Decades of Industry Experience

Large, High-Growth Markets with Long-Term Secular Tailwinds

Multiple Levers to Drive Continued Growth:

Disruptive Technologies, Customer Driven Technology Development, Sticky Technology

Partnerships, Differentiated High Margin Volume Manufacturing

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SkyWater’s Unique Model Accelerates Disruption

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OUR TaaS℠ MODEL

Co-creates disruptive

technologies

Builds long relationships through

collaborative development

and manufacturing

Leverages world-class

capabilities

WHO WE ARE

Manufacturing as a Service

Advanced Technology Services (ATS)enable co-creation of differentiated solutions

which are the unique expression of the

combined customer/SkyWater multi-

disciplinary technology teams.

Technology as a ServiceSM (TaaS)SM

Innovation as a Service

Wafer Services supply customers with ICs and

microdevices for commercial or mission

ready products.

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We are the only U.S.-owned

pure-play foundry.

2005 2008 2017 2018 2019 2020

65 nm qualified Technology

foundry opens

to non-Cypress

customers

SkyWater

received DMEA

Cat 1A Trusted

Accreditation

SkyWater and MIT

selected for

DARPA 3DSoC

program

$170 M rad-hard

technology and

building

expansion

announced

3-year anniversary

of SkyWater

completion of

Cypress ToP

contract

Florida

Advanced

Packaging

Facility integrated

into operation

2021

Extending a legacy of manufacturing

excellence to meet the industry’s needs

in a post-Moore’s Law reality

$112M IPO closed

April, 2021

Cypress SkyWater

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CERTIFIEDISO9001 / IATF16949 Automotive Certified

ISO13485 Medical Certified

ISO14001 Environmental Certified

DMEA Cat 1A Trusted

ITAR and Secure Processing Supported

OPERATION 200 mm equipment

91,000 ft² Cleanroom

Class 10 + SMIF

10,000 30 ML CMOS wafers or 50,000 MOSFET wafers

per month

90 nm+ feature geometries

NotesSite added to operation Feb 2021

DMEA Cat 1A Trusted – pending, planned late 2021

Facility will enable custom advanced packaging

solutions

OPERATION 200 mm equipment

Size: 109,000 ft2 total

26,000 ft2 of class 1000

9,400 ft2 of class 10,000

SkyWater MinnesotaBloomington, MN

SkyWater FloridaKissimmee, FL

Fab

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Conventional/

Specialty Foundry

Target

“Frictionless Productization”

SkyWater is Defining a New Category

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Ability to Transition

to Volume

Manufacturing

▪ Moderate

customization

▪ Specialty

technologies

▪ Medium volumes

▪ 200 mm and 300 mm

substrates

Technology

Foundry

Specialty

FoundryAdvanced Technology

Services

+

Wafer Services

✓ High customization

✓ Next-generation

technologies

✓ Variable volumes

✓ 200 mm substrates

Conventional

Foundry

▪ Minimal

customization

▪ Digital processors,

CPUs, GPUs

▪ High volumes

▪ 300 mm substrates

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Model Enables Early Foundry Engagement

✓ Efficient R&D ✓ Accelerated Time-to-Market ✓ Volume Manufacturing

Technology as a Service

Wafer Services

Low HighTechnology / Manufacturing Readiness Level

Advanced Technology Services (ATS)

Concept &

Feasibility

Technology

Demonstration

Process

DevelopmentProduct Design

Product

Qualification

Volume

Manufacturing

Product

Design

Kits

IP Library

&

Ecosystem

Custom

Process Flows

Co-Creation

Superconducting

Mixed-Signal

Rad-Hard

3DSoC

Photonics

Power Discrete

MEMS

Advanced

Packaging

Power Discrete

Mixed-Signal

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Optimization for

Manufacturing

Photonics

MEMS

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Partnership Pathways: Prototype to Production

Wafer

Services

r&d:

Volume

ProductionPrimary Activity

Operating &

Business Model

Advanced

Technology

Services

Qualification

r&D: Maturing & Qualifying

Capabilities, Process Flows, and

Products for Scale

R&d: Proof of Concept

Tech Demonstration

Process Development

TRL / MRL: 3~6Technology Readiness &

Manufacturing ReadinessTRL / MRL: 6~8 TRL / MRL: 8~9

• NRE

• Tooling

• 1x Setup

• Per Wafer

• MPW

• NRE

• Tooling

• Early Access Program

• Flow Transfer

Research Commercialization

Power DiscreteMixed-Signal3DSoC 90nm Rad-Hard PhotonicsMEMS

Example Start Points

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TaaSSM Accelerates Concepts to Market

Scientific Research Technology Development Product Development Manufacturing

Expanding boundaries of

current principles of

understanding

Co-dependent device and process

R&D

Products designed on mature

process technologies – little to

no process R&D

Qualified products produced

for commercial or mission

integration

University/

Government Lab

TaaSSM

Conventional

Foundry

Low HighTechnology Readiness Level

Technology as a Service

Advanced Technology Services Wafer Services

PDK Driven Designs

Customer Funded Device and

Process R&D $$$

PDK Driven Designs & Customer

Developed Process FlowsTechnology and Product Level

Differentiation

Predominantly Product Level

DifferentiationSelf Funded $$$

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Diverse Vertical Markets

Served by Differentiated Platforms

Automotive &

Transportation

Advanced

Computing ConsumerBio-

Health

Industrial

and IoT

Aerospace

& Defense

TaaSSM model supports disruptive trends across markets

TaaSSM feeds recurring revenue through differentiated engagements

Advanced Technology Services form “sticky” customer relationships

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PlatformAerospace &

Defense

Advanced

Computing

Automotive &

TransportationBio-Health Consumer Industrial / IoT

Mixed Signal ● ● ● ● ●

Rad-Hard ● ●

Discrete Power ● ● ● ●

Advanced

Packaging ● ● ● ● ● ●

Superconducting ● ●

3DSoCs ● ● ● ● ● ●

Silicon Photonics ● ● ● ●

MEMS ● ● ● ●

Diverse Markets and Technologies Enable Rapid Growth

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Technology Categories

Advanced Computing & Artificial Intelligence

Superconducting

Foundry service

provider for quantum

and supercomputing

applications

Photonics

Capabilities for

passive photonic

device integration

Carbon

Nanotubes

CNT enabled

3DSoC for AI and

edge computing

Advanced

Packaging &

Interposers

Capabilities for

passive and active

solutions for high

performance

applications

Mixed-Signal

CMOS

Flexible Solutions

for Commercial &

Defense

Power

Discrete

MOSFET

Differentiated

Flows

Support for IGBTs,

TVSs

MEMS

Microfluidics

Microbolometers

Rad-Hard

Leading

Strategic Rad-

Hard Solutions

Connected Devices, Sensors and Sensor Integration

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Select Partners & Customers

CustomersStrategic Technology Partners

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Financial Summary

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2017 2018 2019 2020

Demonstrated ATS Growth

43% Revenue growth in 2020

ATS revenues exceed Wafer Services

revenues for first time in 2020

Average ATS program spend grew by

66% since March 2017

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ATS Revenue by Customer

Each color band is a distinct customer

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Increasing Revenue DiversityReflects TaaSSM Adoption

Advanced Technology Services (ATS)

More customers developing technology

and existing programs expanding in scope

Wafer Services

Stronger mix of customers, full capacity

and higher margin products in production

Infrastructure

Customers invest in facilities and

equipment for technology and process

development

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201710 Mo

2018 2019 2020

Revenue Trend

Cypress/Infineon Non-Cypress/Infineon

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TaaSSM Model Addresses Strong Demand

Wafer Services

99%

ATS1%

2017At time of spin off

Wafer Services

33%

ATS67%

2020

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Financial Model

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2020 TTM Q2 2021

Sales $140M $162M $41M

Non-GAAP Gross

Margin % 17% 15% 7%

Adj EBITDA Margin % 10% 7% (2)%

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Q2 2021 Financial Summary

• Net Sales growth of 34% driven by

strong ATS and WS performance

• Gross profit decreased due to ramping

WS and investments in radhard and

advanced packaging

• Adjusted EBITDA declined reflecting

gross profit flow through and increased

operating expenses

• Cash and equivalents of $64.6M

• CapEx of $7.7M

• $28.9M remaining on $65M revolver

In USD millions Q2 21 Q2 20 Y/Y

ATS Sales $26.9 $19.9 35%

Wafer Services Sales $14.3 $10.9 31%

Net Sales $41.2 $30.8 34%

Non-GAAP Gross Profit $3.0 $5.6 (47) %

Non-GAAP Gross Margin 7.2% 18.1% (1,090) bps

Adjusted EBITDA $(0.8) $2.5 (133)%

Adjusted EBIDTA margin (2.0)% 8.0% (1,000) bps

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Multiple Drivers of Future Revenue

and Margin Growth

Automotive &

Transportation

EXTEND A&D CORE MARKETS

into high-growth, high-margin commercial markets through strategic customer partnerships

Extreme Environment

MicroelectronicsAdvanced Packaging

Point of Care Diagnostics

& Genetic Sequencing

High Performance Power

Management & IoT

Execute on 90 nm FDSOI

technology commercialization for

rad-hard and high temperature

applications

Execute existing programs;

fill pipeline with ATS opportunities;

drive customers into Wafer

Service production projects

Increase penetration with TaaS

model in high-value markets that

require custom integration services

Enable leading-edge power

management and custom

connectivity solutions across

markets

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Investment Highlights

High-Margin ATS Combined with Wafers Services Creates a Scalable Business Model

Uniquely Positioned to Serve Megatrends:

Artificial Intelligence, Electrification, Medical Implants, Rapid Disease Screening, 5G/6G

Communications, Commercialization of Space

Seasoned Management Team with Decades of Industry Experience

Large, High-Growth Markets with Long-Term Secular Tailwinds

Multiple Levers to Drive Continued Growth:

Disruptive Technologies, Customer Driven Technology Development, Sticky Technology

Partnerships, Differentiated High Margin Volume Manufacturing

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02

03

04

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GAAP to Non-GAAP ReconciliationWe provide supplemental non-GAAP financial information that our management utilizes to evaluate our ongoing financial performance and provide

additional insight to investors as supplemental information to our U.S. GAAP results. We provide non-GAAP gross profit, non-GAAP gross margin,

non-GAAP net loss to shareholders, and non-GAAP net loss per share. We provide these non-GAAP financial measures because we believe this non-

GAAP presentation provides a baseline for analyzing trends in our business and to exclude certain items that may not be indicative of our core

operating results and for the other reasons described in the footnotes to the tables below. The non-GAAP financial measures disclosed in this

earnings press release should not be viewed as an alternative to, or more meaningful than, the reported results prepared in accordance with GAAP. In

addition, because our non-GAAP measures are not determined in accordance with U.S. GAAP, these measures are susceptible to differing calculations,

and not all comparable or peer companies may calculate their non-GAAP measures in the same manner.

We also provide adjusted EBITDA and adjusted EBITDA margin as supplemental non-GAAP measurements. We define adjusted EBITDA as net income

or loss before interest expense, income tax provision (benefit), depreciation and amortization, equity-based compensation and certain other items

that we do not view as indicative of our ongoing performance, including Paycheck Protection Program loan forgiveness, corporate conversion and

initial public offering costs, SkyWater Florida start-up costs, management transition expense, fair value changes in contingent consideration, fair value

changes in warrants and management fees. We believe adjusted EBITDA is a useful performance measure because it allows for an effective evaluation

of our operating performance when compared to our peers, without regard to our financing methods or capital structure. We exclude the items listed

above from net income or loss in arriving at adjusted EBITDA because these amounts can vary substantially within our industry depending upon

accounting methods and book values of assets, capital structures and the method by which the assets were acquired. Adjusted EBITDA should not be

considered as an alternative to, or more meaningful than, net income determined in accordance with U.S. GAAP. Certain items excluded from

adjusted EBITDA are significant components in understanding and assessing a company’s financial performance, such as a company’s cost of capital

and tax structure, as well as the historic costs of depreciable assets, none of which are reflected in adjusted EBITDA. Our presentation of adjusted

EBITDA should not be construed as an indication that our results will be unaffected by the items excluded from adjusted EBITDA. In future fiscal

periods, we may exclude such items and may incur income and expenses similar to these excluded items. Accordingly, the exclusion of these items

and other similar items in our non-GAAP presentation should not be interpreted as implying that these items are non-recurring, infrequent or

unusual, unless otherwise expressly indicated.

The following tables present a reconciliation of the most directly comparable financial measures, calculated and presented in accordance with U.S.

GAAP, to our non-GAAP financial measures.

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GAAP to Non-GAAP Reconciliation

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GAAP to Non-GAAP Reconciliation